SAMA regulates banking, finance and payment services. We advise regulated and fintech clients on licensing pathways and supervisory requirements.
When a business deals with SAMA
The Saudi Central Bank (SAMA) is a government institution, and businesses deal with it directly through the channels it specifies; Innovant is an independent advisory firm and not part of SAMA. Companies typically come into contact with SAMA when they plan to offer a regulated financial service, such as:
- Payment services, including digital wallets and payment processing.
- Finance activities, such as consumer, SME or real-estate finance and leasing.
- Buy-now-pay-later and other consumer credit products.
- Debt-based crowdfunding.
- Money exchange and remittance services.
How a licensing pathway generally works
- Classify the activity: confirm whether the product is regulated, and by which authority.
- Engage early: discuss the proposed model with SAMA through its published channels; innovative models may first be tested in its regulatory sandbox.
- Prepare the application: business plan, ownership structure, governance, fit-and-proper information for directors and senior managers, a capital plan, and anti-money laundering, cybersecurity and consumer-protection frameworks. Minimum capital and similar thresholds are set by SAMA and can change.
- Licence and launch: meet any conditions attached to the approval before going live.
- Ongoing supervision: periodic reporting, compliance and audit functions, and notification of material changes.
Common issues
- Launching or marketing a product before confirming whether it needs a licence.
- Underestimating the staffing, systems and compliance capacity expected before approval.
- Outsourcing critical functions without the controls SAMA expects.
Frequently asked questions
Does my fintech need a SAMA licence?
If it provides payments, lending or other services within SAMA’s regulatory scope, it is likely to. The answer depends on the exact activity, so confirm it with SAMA before launch.
How do SAMA and the CMA divide fintech?
SAMA covers banking, payments and finance activities, including debt crowdfunding. The Capital Market Authority (CMA) covers securities activities, such as equity crowdfunding and investment platforms.
Can a foreign company apply?
Foreign-owned businesses usually operate through a Saudi entity, which involves the Ministry of Investment (MISA) as well as SAMA. Ownership conditions depend on the activity.
What is the regulatory sandbox?
It is a controlled environment in which SAMA allows selected firms to test innovative financial products with real customers, within set limits, before seeking a full licence.
